LaSalle Hotel Properties : Reports Fourth Quarter and Full Year 2011 Results
02/22/2012 | 04:05pm
Full year hotel EBITDA margin increased 173 basis points to 30.5
percent
LaSalle Hotel Properties (NYSE: LHO) today announced results for the
fourth quarter and year ended December 31, 2011. The Company's results
include the following:
Fourth Quarter
Year-to-Date
2011
2010
2011
2010
($'s in millions except per share/unit data)
Total Revenue
$
179.0
$
161.7
$
719.0
$
600.4
Net income (loss) to common shareholders
$
0.6
$
(17.0
)
$
12.9
$
(24.8
)
Net income (loss) to common shareholders per diluted share
$
0.01
$
(0.24
)
$
0.16
$
(0.36
)
EBITDA(1)
$
47.1
$
27.0
$
201.0
$
152.4
Adjusted EBITDA(1)
$
49.2
$
43.1
$
204.4
$
165.0
FFO(1)
$
28.2
$
23.1
$
123.3
$
92.5
Adjusted FFO(1)
$
30.3
$
26.7
$
127.7
$
98.1
FFO per diluted share/unit(1)
$
0.34
$
0.32
$
1.52
$
1.33
Adjusted FFO per diluted share/unit(1)
$
0.36
$
0.37
$
1.57
$
1.41
RevPAR
$
140.10
$
133.37
$
147.69
$
139.11
RevPAR growth
5.0
%
6.2
%
Hotel EBITDA Margin
29.3
%
28.4
%
30.5
%
28.8
%
Hotel EBITDA Margin growth
87bps
173bps
(1) See tables later in press release, which list adjustments
that reconcile net income (loss) to earnings before interest, taxes,
depreciation and amortization ("EBITDA"), adjusted EBITDA, funds from
operations ("FFO"), FFO per share/unit, adjusted FFO, adjusted FFO per
share/unit and hotel EBITDA. EBITDA, adjusted EBITDA, FFO, FFO per
share/unit, adjusted FFO, adjusted FFO per share/unit and hotel EBITDA
are non-GAAP financial measures. See further discussion of these
non-GAAP measures and reconciliations to net income (loss) later in this
press release.
Fourth Quarter Highlights
RevPAR: Room revenue per available room ("RevPAR") for the
quarter ended December 31, 2011 increased 5.0 percent to $140.10, as a
result of a 5.0 percent increase in average daily rate ("ADR") to
$196.16 and a 0.1 percent increase in occupancy to 71.4 percent.
RevPAR at our Washington, DC hotels increased 6.0 percent.
RevPAR excluding Indianapolis Marriott Downtown and Lansdowne
Resort: The performance of the portfolio was impacted by weak
RevPAR at Indianapolis Marriott Downtown and Lansdowne Resort. RevPAR
declined at Indianapolis Marriott Downtown due to additional room
supply with the construction of a nearly 1000-room competitor which
opened in February 2011. Lansdowne Resort also negatively impacted the
portfolio's performance and the Company has recently transitioned the
management of this asset to Destination Hotels & Resorts. The
portfolio's RevPAR excluding Indianapolis Marriott Downtown and
Lansdowne Resort increased 6.6 percent to $146.11, comprised of a 5.5
percent ADR increase to $201.41 and a 1.1 percent improvement in
occupancy to 72.5 percent. By March 2012, the additional supply in
Indianapolis will have been in the market for a full year and the
Company expects performance at Lansdowne Resort to benefit from the
management transition.
Hotel EBITDA Margin: The Company's hotel EBITDA margin for the
fourth quarter was 29.3 percent, an 87 basis point improvement
compared to the comparable prior year period. The margin increase,
excluding the impact of a successful real estate tax appeal for our
Chicago properties in the fourth quarter of 2010, was 154 basis points.
Adjusted EBITDA: The Company's adjusted EBITDA was $49.2
million, an increase of 14.1 percent over the fourth quarter of 2010.
Adjusted FFO: The Company generated fourth quarter adjusted FFO
of $30.3 million, or $0.36 per diluted share/unit, compared to $26.7
million or $0.37 per diluted share/unit for the comparable prior year
period.
Acquisitions: The Company acquired the Villa Florence in San
Francisco on October 5, 2011 for $67.1 million and the Park Central
Hotel in New York City on December 29, 2011 for $396.2 million.
Capital Markets: The Company completed the following capital
markets initiatives during the fourth quarter:
On December 14, 2011, the Company entered into a new $750.0
million senior unsecured credit facility. The new facility matures
on January 30, 2017, including extensions subject to certain
conditions. Additionally, LaSalle Hotel Lessee, Inc., the
Company's taxable REIT subsidiary, refinanced its $25.0 million
revolver with no change in capacity, on similar terms as the
senior unsecured credit facility.
During the fourth quarter, the Company purchased 337,718 of its
shares for $6.0 million, an average cost of $17.80.
Capital Investments: The Company invested $18.2 million of
capital in its hotels, including the continuation of the 33 guestroom
expansion at Hotel Amarano Burbank and the commencement of the
guestroom renovation at The Liaison Capitol Hill and meeting space
renovation at Westin Michigan Avenue.
Dividends: On December 15, 2011, the Company declared a fourth
quarter 2011 dividend of $0.11 per common share of beneficial interest.
"Our hotels continued to deliver strong results during the fourth
quarter," said Michael D. Barnello, President and Chief Executive
Officer of LaSalle Hotel Properties. "Furthermore, we were able to make
two acquisitions during the quarter in key US markets and close on our
new credit facility with attractive terms, which gives us the capacity
and flexibility to make additional opportunistic investments as they
emerge."
Subsequent Events
The Company announced that effective January 25, 2012, Jeff Foland was
elected to its Board of Trustees. Mr. Foland currently serves as
Executive Vice President of United Airlines and President of Mileage
Plus Holdings, LLC.
On February 15, 2012, the Company engaged Destination Hotels & Resorts
to manage Lansdowne Resort.
During January and February 2012, the Company sold 1,714,939 common
shares through its ATM program at an average net price of $27.15 per
share.
Full Year 2011 Highlights
RevPAR: RevPAR increased 6.2 percent to $147.69, as a result of
a 5.1 percent increase in ADR to $193.27 and a 1.1 percent increase in
occupancy to 76.4 percent. RevPAR at our Washington, DC hotels
increased 6.1 percent.
Hotel EBITDA Margin: The Company's hotel EBITDA margin was 30.5
percent, which was an improvement of 173 basis points compared to 2010.
Adjusted EBITDA: The Company's adjusted EBITDA was $204.4
million, an increase of 23.9 percent over 2010.
Adjusted FFO: The Company generated adjusted FFO of $127.7
million, or $1.57 per diluted share/unit, compared to $98.1 million or
$1.41 per diluted share/unit during 2010.
Acquisitions: The Company invested $543.4 million to acquire
three properties during 2011 bringing the two-year acquisition
investment total to $1.1 billion. The 2011 acquisitions include the
following:
The Viceroy Santa Monica for $80.1 million on March 16;
The Villa Florence in San Francisco for $67.1 million on October
5; and
The Park Central Hotel in New York City for $396.2 million on
December 29.
Capital Markets: The Company completed several capital markets
initiatives during 2011 including the following:
During the first quarter of 2011, the Company issued $66.4 million
of 7.5% Series H Cumulative Redeemable Preferred Shares and
redeemed $27.5 million of 8.375% Series B Cumulative Redeemable
Preferred Shares.
During 2011, the Company used its ATM programs to sell 4,064,708
common shares at an average net price of $27.26 and for total net
proceeds of $110.8 million.
On April 26, 2011, the Company sold 7,896,612 common shares in an
underwritten public offering at an average net price of $27.44,
resulting in net proceeds of $216.7 million.
On August 29, 2011, the Company announced that its Board of
Trustees authorized a share repurchase program to acquire up to
$100.0 million of the Company's common shares. From September
through October 2011, the Company acquired 1,389,574 of its common
shares through its share repurchase program at a cost of $24.5
million and an average price of $17.66.
On December 14, 2011, the Company entered into a new $750.0
million senior unsecured credit facility. The new facility matures
on January 30, 2017, including extensions subject to certain
conditions. Additionally, LaSalle Hotel Lessee, Inc., the
Company's taxable REIT subsidiary, refinanced its $25.0 million
revolver with no change in capacity, on similar terms as the
senior unsecured credit facility.
Capital Investments: The Company invested $48.8 million of
capital in its hotels throughout the year, completing renovations at
Westin Copley in Boston, Topaz Hotel and Hotel Rouge in Washington, DC
and Hotel Viking in Newport, Rhode Island. The Company's investments
also included commencing the 33 guestroom expansion at Hotel Amarano
Burbank, the guestroom renovation at The Liaison Capitol Hill and the
meeting space renovation at Westin Michigan Avenue.
Balance Sheet
As of December 31, 2011, the Company had total outstanding debt of
$951.2 million, including $265.0 million outstanding on its senior
unsecured credit facility. Total net debt to trailing 12 month Corporate
EBITDA (as defined in the Company's senior unsecured credit facility)
was 3.7 times as of December 31, 2011 and its fixed charge coverage
ratio was 2.5 times. For the fourth quarter, the Company's weighted
average interest rate was 5.4 percent. As of December 31, 2011, the
Company had $37.2 million of cash and cash equivalents on its balance
sheet and capacity of $509.3 million available on its credit facilities.
2012 Outlook
The Company is providing its 2012 outlook based on an economic
environment that continues to improve and assuming no acquisitions. The
Company's RevPAR growth and financial expectations for 2012 are as
follows:
Low-end
High-end
($'s in millions except per share/unit data)
RevPAR growth
5.0%
7.0%
Hotel EBITDA Margins
31.5%
32.8%
Hotel EBITDA Margin Change
75 bps
200 bps
Adjusted EBITDA
$
250.0
$
263.0
Adjusted FFO
$
164.0
$
175.0
Adjusted FFO per diluted share/unit
$
1.92
$
2.05
Income Tax Expenses
$
8.0
$
10.0
Capital Investments
$
80.0
$
90.0
2012 First Quarter Outlook
Based on the portfolio's performance quarter-to-date, the Company
expects first quarter RevPAR to increase 4.0 percent to 5.5 percent,
resulting in adjusted EBITDA of $29.0 million to $31.5 million, adjusted
FFO of $13.0 million to $15.5 million and adjusted FFO per share/unit of
$0.15 to $0.18. The Company's outlook for the first quarter includes
room revenue displacement of $2.2 million due to the renovations at
several properties, including The Liaison Capitol Hill, Le Parc Suite
Hotel, Hotel Roger Williams and Westin Michigan Avenue. Absent this
displacement, the Company's RevPAR outlook would have been 6.0 percent
to 7.5 percent.
Earnings Call
The Company will conduct its quarterly conference call on Thursday,
February 23, 2012 at 9:00 AM EST. To participate in the conference call,
please dial (877) 681-3376. Additionally, a live webcast of the
conference call will be available through the Company's website. To
access, log on to http://www.lasallehotels.com.
A replay of the conference call will be archived and available online
through the Investor Relations section of http://www.lasallehotels.com.
LaSalle Hotel Properties is a leading multi-operator real estate
investment trust owning 37 upscale full-service hotels, totaling
approximately 9,800 guest rooms in 13 markets in 9 states and the
District of Columbia.
The Company focuses on owning, redeveloping and repositioning upscale
full-service hotels located in urban, resort and convention markets.
LaSalle Hotel Properties seeks to grow through strategic relationships
with premier lodging companies, including Westin Hotels and Resorts,
Hilton Hotels Corporation, Outrigger Lodging Services, Noble House
Hotels & Resorts, Hyatt Hotels Corporation, Benchmark Hospitality, White
Lodging Services Corporation, Thompson Hotels, Sandcastle Resorts &
Hotels, Davidson Hotel Company, Denihan Hospitality Group, the Kimpton
Hotel & Restaurant Group, LLC, Accor, Destination Hotels & Resorts, HEI
Hotels & Resorts, JRK Hotel Group, Inc., Viceroy Hotel Group and
Highgate Holdings.
This press release, together with other statements and information
publicly disseminated by the Company, contains certain forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. The Company intends such forward-looking statements to
be covered by the safe harbor provisions for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995 and
includes this statement for purposes of complying with these safe harbor
provisions. Forward-looking statements, which are based on certain
assumptions and describe the Company's future plans, strategies and
expectations, are generally identifiable by use of the words "will,"
"believe," "expect," "intend," "anticipate," "estimate," "project" or
similar expressions. Forward-looking statements in this press release
include, among others, statements about outlook for RevPAR, adjusted
FFO, adjusted EBITDA and derivations thereof and the Company's
expectation that performance at Lansdowne Resort will benefit from the
management transition. You should not rely on forward-looking statements
since they involve known and unknown risks, uncertainties and other
factors that are, in some cases, beyond the Company's control and which
could materially affect actual results, performances or achievements.
Factors that may cause actual results to differ materially from current
expectations include, but are not limited to, (i) the Company's
dependence on third-party managers of its hotels, including its
inability to implement strategic business decisions directly, (ii) risks
associated with the hotel industry, including competition, increases in
wages, energy costs and other operating costs, actual or threatened
terrorist attacks, downturns in general and local economic conditions
and cancellation of or delays in the completion of anticipated demand
generators, (iii) the availability and terms of financing and capital
and the general volatility of securities markets, (iv) risks associated
with the real estate industry, including environmental contamination and
costs of complying with the Americans with Disabilities Act and similar
laws, (v) interest rate increases, (vi) the possible failure of the
Company to qualify as a REIT and the risk of changes in laws affecting
REITs, (vii) the possibility of uninsured losses, (viii) risks
associated with redevelopment and repositioning projects, including
delays and cost overruns and (ix) the risk factors discussed in the
Company's Annual Report on Form 10-K as updated in its Quarterly Reports.Accordingly, there is no assurance that the Company's expectations
will be realized.Except as otherwise required by the federal
securities laws, the Company disclaims any obligation or undertaking to
publicly release any updates or revisions to any forward-looking
statement contained herein (or elsewhere) to reflect any change in the
Company's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
For additional information or to receive press releases via e-mail,
please visit our website at www.lasallehotels.com.
Non-GAAP Financial Measures
FFO, EBITDA and Hotel EBITDA
The Company considers the non-GAAP measures of FFO (including FFO per
share/unit), EBITDA and hotel EBITDA to be key supplemental measures of
the Company's performance and should be considered along with, but not
as alternatives to, net income or loss as a measure of the Company's
operating performance. Historical cost accounting for real estate assets
implicitly assumes that the value of real estate assets diminishes
predictably over time. Since real estate values instead have
historically risen or fallen with market conditions, most real estate
industry investors consider FFO, EBITDA and hotel EBITDA to be helpful
in evaluating a real estate company's operations.
The White Paper on FFO approved by NAREIT in April 2002, as revised in
2011*, defines FFO as net income or loss (computed in accordance with
GAAP), excluding gains or losses from sales of properties and items
classified by GAAP as extraordinary, plus real estate-related
depreciation and amortization (excluding amortization of deferred
finance costs) and after comparable adjustments for the Company's
portion of these items related to unconsolidated entities and joint
ventures. The Company computes FFO consistent with standards established
by NAREIT, which may not be comparable to FFO reported by other REITs
that do not define the term in accordance with the current NAREIT
definition or that interpret the current NAREIT definition differently
than the Company.
With respect to FFO, the Company believes that excluding the effect of
extraordinary items, real estate-related depreciation and amortization,
and the portion of these items related to unconsolidated entities, all
of which are based on historical cost accounting and which may be of
limited significance in evaluating current performance, can facilitate
comparisons of operating performance between periods and between REITs,
even though FFO does not represent an amount that accrues directly to
common shareholders. However, FFO may not be helpful when comparing the
Company to non-REITs.
With respect to EBITDA, the Company believes that excluding the effect
of non-operating expenses and non-cash charges, and the portion of these
items related to unconsolidated entities, all of which are also based on
historical cost accounting and may be of limited significance in
evaluating current performance, can help eliminate the accounting
effects of depreciation and amortization, and financing decisions and
facilitate comparisons of core operating profitability between periods
and between REITs, even though EBITDA also does not represent an amount
that accrues directly to common shareholders.
With respect to hotel EBITDA, the Company believes that excluding the
effect of corporate-level expenses, non-cash items, and the portion of
these items related to unconsolidated entities, provides a more complete
understanding of the operating results over which individual hotels and
operators have direct control. We believe property-level results provide
investors with supplemental information on the ongoing operational
performance of our hotels and effectiveness of the third-party
management companies operating our business on a property-level basis.
FFO, EBITDA and hotel EBITDA do not represent cash generated from
operating activities determined by GAAP and should not be considered as
alternatives to net income, cash flows from operations or any other
operating performance measure prescribed by GAAP. FFO, EBITDA and hotel
EBITDA are not measures of the Company's liquidity, nor are FFO, EBITDA
and hotel EBITDA indicative of funds available to fund the Company's
cash needs, including its ability to make cash distributions. These
measurements do not reflect cash expenditures for long-term assets and
other items that have been and will be incurred. FFO, EBITDA and hotel
EBITDA may include funds that may not be available for management's
discretionary use due to functional requirements to conserve funds for
capital expenditures, property acquisitions, and other commitments and
uncertainties. To compensate for this, management considers the impact
of these excluded items to the extent they are material to operating
decisions or the evaluation of the Company's operating performance.
Adjusted FFO and Adjusted EBITDA
The Company presents adjusted FFO (including adjusted FFO per
share/unit) and adjusted EBITDA, which adjusts for certain additional
items including gains on sale of property (to the extent included in FFO
or EBITDA), impairment losses, acquisition transaction costs, costs
associated with the departure of executive officers, costs associated
with the recognition of issuance costs related to the calling of
preferred shares and certain other items. The Company excludes these
items as it believes it allows for meaningful comparisons with other
REITs and between periods and is more indicative of the ongoing
performance of its assets. As with FFO, EBITDA, and hotel EBITDA, the
Company's calculation of adjusted FFO and adjusted EBITDA may be
different from similar adjusted measures calculated by other REITs.
*As a result of NAREIT issued guidance in 2011, the Company recast FFO
for the year ended December 31, 2010 to exclude loss on impairment of
properties.
LASALLE HOTEL PROPERTIES
Consolidated Statements of Operations
(in thousands, except share data)
(unaudited)
For the three months ended
For the year ended
December 31,
December 31,
Revenues:
2011
2010
2011
2010
Hotel operating revenues:
Room
$
114,953
$
102,841
$
471,023
$
388,108
Food and beverage
50,333
47,019
193,332
162,831
Other operating department
12,276
10,951
49,650
43,703
Total hotel operating revenues
177,562
160,811
714,005
594,642
Other income
1,417
935
5,002
5,715
Total revenues
178,979
161,746
719,007
600,357
Expenses:
Hotel operating expenses:
Room
28,946
26,669
115,839
95,271
Food and beverage
34,589
31,610
133,838
112,757
Other direct
4,653
4,315
20,390
18,753
Other indirect
46,306
42,720
182,771
153,678
Total hotel operating expenses
114,494
105,314
452,838
380,459
Depreciation and amortization
27,710
27,457
111,282
105,587
Real estate taxes, personal property taxes and insurance
8,955
6,017
35,425
30,897
Ground rent
1,859
1,280
7,720
5,825
General and administrative
4,201
7,038
17,120
18,802
Acquisition transaction costs
1,997
977
2,571
3,003
Impairment of development property
-
8,427
-
8,427
Other expenses
778
749
2,527
3,287
Total operating expenses
159,994
157,259
629,483
556,287
Operating income
18,985
4,487
89,524
44,070
Interest income
26
48
48
126
Interest expense
(10,138
)
(10,131
)
(39,704
)
(36,500
)
Income before income tax expense and discontinued operations
8,873
(5,596
)
49,868
7,696
Income tax expense
(1,378
)
(227
)
(7,048
)
(5,075
)
Income (loss) from continuing operations
7,495
(5,823
)
42,820
2,621
Discontinued operations:
Income (loss) from operations of properties disposed of, including
gain on sale and loss on impairment
388
(5,316
)
829
(2,502
)
Income tax benefit (expense)
79
629
(33
)
1,651
Net income (loss) from discontinued operations
467
(4,687
)
796
(851
)
Net income (loss)
7,962
(10,510
)
43,616
1,770
Noncontrolling interests:
Redeemable noncontrolling interest in loss of consolidated entity
-
155
2
191
Noncontrolling interests of common units in Operating Partnership
(1
)
-
(1
)
-
Net (income) loss attributable to noncontrolling interests
(1
)
155
1
191
Net income (loss) attributable to the Company
7,961
(10,355
)
43,617
1,961
Distributions to preferred shareholders
(7,402
)
(6,688
)
(29,952
)
(26,754
)
Issuance costs of redeemed preferred shares
-
-
(731
)
-
Net income (loss) attributable to common shareholders
$
559
$
(17,043
)
$
12,934
$
(24,793
)
LASALLE HOTEL PROPERTIES
Consolidated Statements of Operations - Continued
(in thousands, except share data)
(unaudited)
For the three months ended
For the year ended
December 31,
December 31,
2011
2010
2011
2010
Earnings per Common Share - Basic:
Net (loss) income attributable to common shareholders before
discontinued operations and excluding amounts attributable to
unvested restricted shares
$
-
$
(0.17
)
$
0.15
$
(0.35
)
Discontinued operations
0.01
(0.07
)
0.01
(0.01
)
Net income (loss) attributable to common shareholders excluding
amounts attributable to unvested restricted shares
$
0.01
$
(0.24
)
$
0.16
$
(0.36
)
Earnings per Common Share - Diluted:
Net (loss) income attributable to common shareholders before
discontinued operations and excluding amounts attributable to
unvested restricted shares
$
-
$
(0.17
)
$
0.15
$
(0.35
)
Discontinued operations
0.01
(0.07
)
0.01
(0.01
)
Net income (loss) attributable to common shareholders excluding
amounts attributable to unvested restricted shares
$
0.01
$
(0.24
)
$
0.16
$
(0.36
)
Weighted average number of common shares outstanding:
Basic
83,417,987
72,570,889
81,155,228
69,549,441
Diluted
83,530,710
72,570,889
81,326,304
69,549,441
LASALLE HOTEL PROPERTIES
FFO and EBITDA
(in thousands, except share/unit data)
(unaudited)
For the three months ended
For the year ended
December 31,
December 31,
2011
2010
2011
2010
Net income (loss) attributable to common shareholders
$
559
$
(17,043
)
$
12,934
$
(24,793
)
Depreciation(1)
27,566
27,635
110,760
110,138
Amortization of deferred lease costs
93
85
318
363
Noncontrolling interests:
Redeemable noncontrolling interest in consolidated entity
-
(155
)
(2
)
(191
)
Noncontrolling interests of common units in Operating Partnership
1
-
1
-
Gain on sale of properties
-
6
(760
)
(29,162
)
Loss on impairment of properties
-
12,561
-
36,129
FFO
$
28,219
$
23,089
$
123,251
$
92,484
Preferred share issuance costs
-
-
731
-
Acquisition transaction costs
1,997
977
2,571
3,003
Tax adjustment related to disposition
-
-
244
-
Costs associated with CFO departure
-
2,612
579
2,612
Non-cash ground rent
115
-
347
-
Adjusted FFO
$
30,331
$
26,678
$
127,723
$
98,099
Weighted average number of common shares and units outstanding:
Basic
83,427,649
72,570,889
81,157,663
69,549,441
Diluted
83,540,372
72,671,490
81,328,739
69,722,700
FFO per diluted share/unit
$
0.34
$
0.32
$
1.52
$
1.33
Adjusted FFO per diluted share/unit
$
0.36
$
0.37
$
1.57
$
1.41
For the three months ended
For the year ended
December 31,
December 31,
2011
2010
2011
2010
Net income (loss) attributable to common shareholders
$
559
$
(17,043
)
$
12,934
$
(24,793
)
Interest expense(1)
10,138
10,131
39,704
36,504
Income tax expense (benefit)(1)
1,299
(402
)
7,081
3,424
Depreciation and amortization(1)
27,710
27,766
111,282
110,676
Noncontrolling interests:
Redeemable noncontrolling interest in consolidated entity
-
(155
)
(2
)
(191
)
Noncontrolling interests of common units in Operating Partnership
1
-
1
-
Distributions to preferred shareholders
7,402
6,688
29,952
26,754
EBITDA
$
47,109
$
26,985
$
200,952
$
152,374
Preferred share issuance costs
-
-
731
-
Acquisition transaction costs
1,997
977
2,571
3,003
Gain on sale of properties
-
6
(760
)
(29,162
)
Loss on impairment of properties
-
12,561
-
36,129
Costs associated with CFO departure
-
2,612
579
2,612
Non-cash ground rent
115
-
347
-
Adjusted EBITDA
$
49,221
$
43,141
$
204,420
$
164,956
Corporate expense
4,823
5,432
19,792
20,985
Interest and other income(1)
(1,442
)
(995
)
(5,093
)
(5,899
)
Hotel level adjustments, net
(998
)
968
(2,228
)
13,022
Hotel EBITDA
$
51,604
$
48,546
$
216,891
$
193,064
(1) Includes amounts from discontinued operations.
With respect to hotel EBITDA, the Company believes that excluding
the effect of corporate-level expenses, non-cash items, and the
portion of these items related to unconsolidated entities, provides
a more complete understanding of the operating results over which
individual hotels and operators have direct control. We believe
property-level results provide investors with supplemental
information on the ongoing operational performance of our hotels and
effectiveness of the third-party management companies operating our
business on a property-level basis.
Hotel EBITDA includes all properties owned as of December 31, 2011
for the Company's period of ownership in 2011 and the comparable
period in 2010. Exceptions: Hotel EBITDA excludes the March period
of ownership for Viceroy Santa Monica and the December period of
ownership for Park Central Hotel. Hotel EBITDA for all stated
periods excludes any properties the Company has sold.
LASALLE HOTEL PROPERTIES
Hotel Operational Data
Schedule of Property Level Results
(in thousands)
(unaudited)
For the three months ended
For the year ended
December 31,
December 31,
2011
2010
2011
2010
Revenues:
Room
$
114,036
$
108,628
$
469,442
$
442,244
Food and beverage
50,263
50,832
193,005
182,376
Other
11,863
11,356
47,880
45,628
Total hotel revenues
176,162
170,816
710,327
670,248
Expenses:
Room
28,778
28,175
115,382
110,543
Food and beverage
34,546
34,607
133,569
127,975
Other direct
4,523
4,353
19,857
19,601
General and administrative
14,824
14,850
56,606
55,184
Sales and marketing
12,520
12,318
50,211
48,470
Management fees
6,371
6,660
24,879
24,476
Property operations and maintenance
6,453
6,669
26,061
25,507
Energy and utilities
4,971
5,160
21,114
21,252
Property taxes
7,992
6,183
31,948
30,778
Other fixed expenses
3,580
3,295
13,809
13,398
Total hotel expenses
124,558
122,270
493,436
477,184
Hotel EBITDA
$
51,604
$
48,546
$
216,891
$
193,064
Note:
This schedule includes operating data for all properties owned as of
December 31, 2011 for the Company's period of ownership in 2011 and
the comparable period in 2010. Exceptions: The schedule excludes the
March period of ownership for Viceroy Santa Monica and the December
period of ownership for Park Central Hotel. All stated periods
exclude any properties the Company has sold. Hotel EBITDA margin is
calculated by dividing hotel EBITDA for the period by the total
hotel revenues for the period.
LASALLE HOTEL PROPERTIES
Statistical Data for the Hotels
(unaudited)
For the three months ended
For the year ended
December 31,
December 31,
2011
2010
2011
2010
Total Portfolio
Occupancy
71.4%
71.4%
76.4%
75.6%
Increase
0.1%
1.1%
ADR
$
196.16
$
186.91
$
193.27
$
183.98
Increase
5.0%
5.1%
RevPAR
$
140.10
$
133.37
$
147.69
$
139.11
Increase
5.0%
6.2%
Note:
This schedule includes operating data for all properties owned as of
December 31, 2011 for the Company's period of ownership in 2011 and
the comparable period in 2010. All stated periods exclude any
properties the Company has sold.
LASALLE HOTEL PROPERTIES
Statistical Data for the Hotels
(unaudited)
Prior Year Operating Data
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
2011
2011
2011
2011
2011
Occupancy
70.1%
84.9%
85.0%
73.7%
78.4%
ADR
$169.51
$202.77
$199.54
$201.39
$194.24
RevPAR
$118.75
$172.16
$169.61
$148.39
$152.36
Note:
This schedule includes operating data for all properties owned as of
December 31, 2011.
LaSalle Hotel Properties Bruce Riggins or Kenneth Fuller,
301-941-1500
